Friday, 23 July 2021

What is sustainable development and what is its impact on modern businesse

 The Sustainable Development Goals (SDGs) are to eradicate poverty in an inclusive way while protecting the environment. They are the fundamental cornerstone of ensuring future economic and business growth. In a world of increasing inequality, poverty and climate change, it is impossible to have a solid and well-functioning company. The company has a unique opportunity to embrace the Sustainable Development Goals agenda as a driving force for business strategy, innovation and investment decisions. Doing so makes business sense and gives you an advantage over your competitors. The Sustainable Development Goals provide the greatest economic opportunity in your life.

It is estimated that the annual investment of 2 to 3 trillion US dollars, the potential value that can be released for society will be huge. It is estimated to be worth hundreds of billions in some sectors, and even more in others. This is a high reward for this global agenda. The market has already begun to respond. We have seen this in climate action. It affects 13 of the 17 Sustainable Development Goals. The companys return in these areas has increased its investment by 18%. [1]. The 2015 Paris Agreement sent a clear signal that governments around the world are committed to decarbonizing our economy. Banks, stock exchanges and boards of directors can all feel this. This shows that the private sector is beginning to accept the business case for a rapid transition to a low-carbon world, which will be discussed at the Business and Climate Summit in London this week, but there is more work to be done. This is also the spirit we need to achieve the Sustainable Development Goals. Unilevers Journey Unilever launched the Unilever Sustainable Living Program (USLP) in 2010,

what is its impact on modern businesses

 which is our sustainable growth plan, and its goals reflect sustainable development goals. USLP states that there is no compromise between sustainability and profitable growth. For example, we now see that our sustainable lifestyle brand is growing 30% faster than the rest of the company. These brands embed sustainability in their purpose and products, and therefore help drive critical progress towards the sustainable development goals.

africa and Asia, where they can walk four miles a day to the nearest water source. The road to today is not easy.

Part of this process means the elimination of quarterly annual reports. why? Because the problems we are trying to solve through our business model and partnerships (food security, health, employment, climate change) cannot be resolved through quarterly reports. They need longer-term solutions and value creation, not 90-day pressure. At first not everyone was satisfied with this approach, but 85% of our investors now regard USLP as an engine for long-term value creation, and 70% of our investors have held stocks for more than 3 years. At this time, global holdings The period is getting shorter and shorter. This was unthinkable a few years ago. Purpose has always been part of Unilevers DNA.

More and more companies see the potential of more sustainable business models, both because they firmly believe that the company can be a force for good, but also because they realize that the cost of inaction usually exceeds the cost of taking action, especially in It involves the growing threats of climate change and water scarcity. After all, sustainability is no longer a niche issue. 54% of consumers want to buy in a more sustainable way. Many are already. Consumers in emerging and developed markets want everything: high-performance products, the right price, and the purpose they can connect to. Unfortunately, however, we have not yet seen the scale and speed we need. Business leaders and investors are still unwilling to fully accept the shift to this new business model. The focus still tends to focus on corporate social responsibility (CSR) occasionally, rather than putting sustainability at the core of your business. They must realize that the potential benefits of sustainable work are huge, and this approach should be more than just a corporate social responsibility activity. This is why the role of the Business and Sustainable Development Committee is so important. The Business Council will quantify the huge returns for companies that lead sustainability in all major areas. This will help promote large-scale and rapid action by companies and accelerate the private sector’s contribution to a more equitable, sustainable and inclusive world. This is an unprecedented era in history. The company must show courage and adopt a strategy that creates long-term value for the company and the society it serves.

 

Why is sustainability important?

In addition to promoting social and environmental change, sustainability initiatives also contribute to the overall success of the organization. It may seem counterintuitive to spend more money on sustainable business practices to increase a companys profitability, but research shows that the most sustainable company is also the most profitable company. Sustainability is an organization. According to data from McKinsey, companies with higher ESG ratings have consistently outperformed the market in the medium and long term. Although sustainability strategies can be a short-term investment, they can bring returns in the long run.

The benefits of company sustainability

You will protect your brand and reduce risks

Scandals are the most terrifying nightmare of a CEO. Improper practices will not only damage the organization’s reputation and cost customers, but also deal with public relations disasters that will divert precious human and financial resources from core business. Working under unsafe conditions. By developing a sustainable strategy to protect the environment and employees, you can also protect yourself from any harmful events.

Having goals is a competitive advantage

Sustainability does not detract from business goals. Instilling goals in your business can help attract a proactive and skilled workforce, thereby driving financial success. In a discussion on Facebook Live, Henderson pointed out that a recent study showed that 89% of executives believe that an organization with a common goal will have higher employee satisfaction. In addition, 85% of respondents said they are more likely to recommend companies with strong goals to others. Making your business an organization that does well in the world, rather than a place that provides salaries, can be a competitive advantage that attracts attention. The best talent.

Conclusion

The value of sustainability Sustainability does not mean sacrificing profits or putting success in a secondary position. Rather, it has become a key element of any organizations successful strategy. Companies that ignore the risks of sustainability are not successful on multiple indicators such as profitability, growth, and employee retention. By incorporating sustainability into your business strategy, you can achieve success through sustainability instead of regretting it.

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